Lynx Engineering Consultants Pty Ltd v The ANI Corporation Limited trading as ANI Bradken Rail Transportation Group (No 3) [2010] FCA 32

Lynx Engineering Consultants Pty Ltd v The ANI Corporation Limited trading as ANI Bradken Rail Transportation Group (No 3) [2010] FCA 32

Security for costs was appropriate given the applicant's (Lynx's) acceptance that s 1335 was enlivened, its financial position, and respondents' likely exposure; the Court fixed security at amounts less than sought by respondents, balancing the need for security with not stultifying the claim. The application for costs of the strike-out application to be paid forthwith was dismissed because the situation did not justify departure from the usual rule that interlocutory costs are not payable forthwith, especially given the protection afforded by the security order.

Parties
Applicant: Lynx Engineering Consultants Pty Ltd; First Respondent: The ANI Corporation Limited trading as ANI Bradken Rail Transportation Group; Second Respondent: Bradken Resources Pty Ltd; Third Respondent: Bradken Limited; Fourth Respondent: WorleyParsons Services Pty Ltd
Jurisdiction
Australia
Judgment Date
02 February 2010
Procedural Posture
Practice and Procedure (costs/security for Costs) / Interlocutory (costs and Security for Costs Applications After Earlier Strike Out Application)
Outcome
Security for costs ordered; application for payment of strike out costs forthwith dismissed; costs of the application to be in the cause.
Legal Topics
Security for Costs, Quantum of Security, Payment of Costs Forthwith, Discretion in Awarding Security for Costs, Gross Sum Costs Orders
Practice and Procedure Costs Security for Costs Quantum of Security Payment of Costs Forthwith Discretion in Awarding Security for Costs Gross Sum Costs Orders

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Parties

Lynx Engineering Consultants Pty Ltd

Applicant

The ANI Corporation Limited trading as ANI Bradken Rail Transportation Group

First Respondent

Bradken Resources Pty Ltd

Second Respondent

Bradken Limited

Third Respondent

WorleyParsons Services Pty Ltd

Fourth Respondent

Procedural Posture

Practice and Procedure (costs/security for Costs) / Interlocutory (costs and Security for Costs Applications After Earlier Strike Out Application)

Legal Issues

  1. 1 Whether to order security for costs and the quantum for second, third, and fourth respondents
  2. 2 Whether costs of a strike out application should be paid forthwith by the applicant

Ratio Decidendi

Security for costs was appropriate given the applicant's (Lynx's) acceptance that s 1335 was enlivened, its financial position, and respondents' likely exposure; the Court fixed security at amounts less than sought by respondents, balancing the need for security with not stultifying the claim. The application for costs of the strike-out application to be paid forthwith was dismissed because the situation did not justify departure from the usual rule that interlocutory costs are not payable forthwith, especially given the protection afforded by the security order.

Court Disposition

Security for costs ordered; application for payment of strike out costs forthwith dismissed; costs of the application to be in the cause.

Orders

  • The motion for the costs of the strike out application to be paid by the applicant forthwith be dismissed.
  • The amount for which security for costs be provided by the applicant in favour of the second and third respondents is fixed at $500,000.